05. Eni S.p.A. (NYSE:E)
Upside Potential: 24.71%
Latest Average Share Price Target: $37.95
Eni S.p.A. (NYSE:E) operates as an integrated energy company worldwide. The company engages in exploration, development, extracting, manufacturing, and marketing crude oil and natural gas, oil-based fuels, chemical products, and gas-fired power, as well as energy products from renewable sources. The company was founded in 1953 and is headquartered in Rome, Italy.
Eni S.p.A. (NYSE:E) is a compelling inclusion in the list of top Italian stocks to buy now, reflecting its robust financial performance and strategic initiatives. Despite missing Q2 earnings expectations with an EPS of $0.98 compared to the anticipated $1.12, Eni’s overall business fundamentals present a strong bullish case. The company has demonstrated significant progress across its operations and strategic goals, with a promising upside potential of 25.28% and an average share price target of $39.60.
Eni S.p.A. (NYSE:E) second-quarter results show solid growth in production and a strategic focus on high-margin and lower-emission assets. The company’s upstream business reported a 6% year-on-year production increase, contributing to a pro forma EBIT of EUR3.5 billion. This performance underscores Eni’s effective navigation of the oil and gas market dynamics, including favorable oil prices and a recovering gas market.
The company’s strategic acquisitions, including Neptune and its integration with Ithaca Energy, have substantially enhanced its upstream portfolio, leading to increased operational synergies in Indonesia, Norway, and Algeria. Additionally, Eni’s divestment of non-core assets in Congo, Nigeria, and the upcoming sale of assets in Alaska is streamlining its portfolio, thereby improving capital efficiency and reducing leverage.
In terms of financial health, Eni S.p.A. (NYSE:E) pro forma EBIT reached EUR4.1 billion, reflecting resilience despite a challenging market environment. The company’s cash flow from operations (CFFO) for the first half of the year amounted to EUR7.8 billion, showing effective cash conversion and operational efficiency. With net debt falling from Q1 peaks and expected leverage below 20% by year-end, Eni’s strong balance sheet provides ample room for future investments and shareholder returns.
The company’s ventures into energy transition businesses, such as Plenitude and Enilive, are also promising. These investments not only enhance Eni’s sustainability profile but also attract significant private capital, reflecting the market’s valuation of Eni S.p.A. (NYSE:E) integrated energy solutions. The planned IPOs for these businesses further underline Eni S.p.A. (NYSE:E) growth trajectory. Overall, Eni S.p.A. (NYSE:E) strategic focus on high-quality assets, strong financial metrics, and effective portfolio management make it a standout choice among Italian stocks. With a forward-looking growth strategy and substantial upside potential, Eni is well-positioned for continued success and robust shareholder value.
